Foothill MWD Approves Budget, Continues to Decrease Expenses

The Foothill Municipal Water District (FMWD) Board of Directors on June 18 adopted its budget for fiscal year 2012-13 continuing to contain costs. For the second year running, the charges Foothill assesses for its programs stayed the same for most agencies. This comes on the heels of reducing costs three years ago to absorb 75% of the rate increase by Metropolitan Water District for calendar year 2011. The 5% rate increase adopted by Metropolitan Water District for calendar year 2013 was passed through to customers.

The board in considering the budget and water rates has moved forward withdrawing from reserves to pay for large expenditures such as for replacement of emergency standby electrical generators. The cost for replacement of these generators is estimated at $2 million. The generators are necessary to run the pumps that lift water to the service area. During emergencies, such as the wind event in November and December, electrical backup generators are necessary so that customers do not run out of water.

“Reserves were built up with the intention of paying for large expenditure capital items such as the replacement of these generators,” said Nina Jazmadarian, general manager of the district. “The goal is to avoid rate increases to cover one-time large capital payments.”

“We continue to look at ways to avoid rate increases to customers,” said board president Richard Atwater. “The board and staff have worked very hard to control costs.”

Foothill Municipal Water District provides imported water to Crescenta Valley Water District, La Cañada Irrigation District, Mesa Crest Water Company, Valley Water Company, Lincoln Avenue Water Company, Las Flores Water Company and Rubio Cañon Land & Water Association. Kinneloa Irrigation District, another retail agency, takes no water from Foothill.

A copy of the budget and budget presentation can be found on the district’s website at www.fmwd.com.